A source linked to a Brazilian producer told SteelOrbis that the reference price for the export of hot dipped galvanized products (HDG) to the US is $760/mt, CFR conditions for ports in the US East coast, having the G40 grade and 4.75mm thickness product as reference, the same price as two weeks ago. For shipments to Europe, the reference remains at $770/mt, under the same conditions.
The source mentioned that HDG is one of the few Brazilian finished steel products to have prices increased if an import tariff is effectively imposed by the US authorities, as HRC and CRC exports from Brazil to the US are not relevant today. He added that Brazil will close 2019 as a net importer of HDG, chiefly due to imports by states in the north and northeast of the country, reflecting logistic hurdles to move steel products from the southeast of the country by road.
In the Brazilian domestic market, HDG is sold today by distributors, in small volumes, at BRL 4,819/mt ($1,170/mt), ex-works, full taxes except IPI, having the Z-100, 1.11mm thickness product as reference, now stable in BRL over the last eight weeks. Larger volumes or direct sales by steel producers are usually entitled to discounts.
The last offer of HDG received by a Brazilian importer from China was priced at $705/mt, against $690/mt two weeks ago, CFR conditions to a port in the south or southeast coast of Brazil, with the Z100/SGCC grade as reference.
In November, Brazil exported 10,100 mt of HDG while importing 13,600 mt of the product, against 34,900 mt exported and 27,000 mt imported in October.
USD = BRL 4.12 (December 12)